Is Stricter Regulation of Incentive Compensation the Missing Piece?

Larry Wall

No 2019-6, FRB Atlanta Working Paper from Federal Reserve Bank of Atlanta

Abstract: Although a number of steps have been taken to reduce the risk of financial stability, some significant weaknesses remain. This paper examines whether stricter regulation of incentive compensation is the missing piece needed to reduce risk to acceptable levels. Unfortunately, this review of the literatures on the relationship of risk to bank chief operating officer and bank employee compensation suggest both have some potential but that significant concerns remain in both cases. At this point, we cannot confidently say that compensation regulation is the missing piece.

Keywords: incentive compensation; bank regulation (search for similar items in EconPapers)
JEL-codes: G01 G21 G28 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2019-03-01
New Economics Papers: this item is included in nep-ban and nep-hrm
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Related works:
Journal Article: Is stricter regulation of incentive compensation the missing piece? (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedawp:2019-06

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DOI: 10.29338/wp2019-06

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